Today the Gazprom delegation led by Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee paid a working visit to the Republic of Bulgaria. Leonid Chugunov, Head of the Project Management Department also joined the delegation.

The discussion centered on the issues of the ongoing cooperation in the gas sector, in particular, the South Stream gas pipeline construction in Bulgaria.

The parties signed a number of documents in the presence of Delyan Dobrev, Bulgarian Economy, Energy and Tourism Minister.

Gazprom and Bulgarian Energy Holding EAD signed a protocol on the South Stream project implementation in the Republic of Bulgaria. The document defines the entry point of the gas pipeline into the Bulgarian gas transmission system, its parameters and further development of the project.

It was agreed to adopt the final investment decision for the project on November 15, 2012.

Besides, the parties formalized the accords reached in spring 2012 on terms and conditions of the existing contracts for Russian natural gas supply to Bulgaria. This will promote an increase in gas off-takes under the existing contracts.

“Signing of these documents is extremely significant for implementing South Stream, a trans-European project. This gas pipeline will enhance the reliability and flexibility of Russian gas supplies to Europe for the coming decades,” stated Alexander Medvedev.

Background

In 2011 Gazprom supplied Bulgaria with 2.81 billion cubic meters of gas.

With a view to diversify the natural gas export routes Gazprom is implementing the project for construction of a gas pipeline running under the Black Sea to the countries of Southern and Central Europe – the South Stream project.

Intergovernmental agreements were signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria in order to implement the onshore gas pipeline section.

In July 2010 Russia and Bulgaria inked the Roadmap to perform the feasibility study for the Bulgarian section of the South Stream project.

In pursuance of the Roadmap, on October 25, 2010 Gazprom and Bulgarian Energy Holding EAD signed the Agreement on the feasibility study for the Bulgarian section of the South Stream project.

On November 13, 2010 Gazprom and Bulgarian Energy Holding EAD signed the Shareholders Agreement and the Articles of Association for the South Stream Bulgaria AD joint project company (JPC) established on a parity basis for the South Stream project implementation in Bulgaria. The JPC was registered in December 2010.

On December 16, 2011 Gazprom and Bulgarian Energy Holding completed the legal procedures related to the feasibility study done by the contractor for the Bulgarian section of the South Stream gas pipeline.

On April 19, 2012 the South Stream Bulgaria AD Shareholders Meeting approved the contractor's agreement for carrying out the spatial planning, environmental impact assessment and project documents preparation for the Bulgarian section of the South Stream gas pipeline.